The Treasury Inspector General for Tax Administration yesterday released Accuracy-Related Penalties Are Seldom Considered Properly During Correspondence Audits (2010-30-059):
The IRS must take additional steps to ensure that accuracy-related penalties are appropriately considered when assessing correspondence audits. …
A TIGTA review of 229 correspondence audits closed in Fiscal Year 2008 found that 211 (92%) of the audits were not considered and assessed in accordance with IRS procedures for accuracy-related penalties. … Appropriately assessing this penalty would have resulted in estimated increased revenues of $3.5 million.
